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Quantchabot has detected a promising Covered Put trade opportunity for VIATRIS INC (VTRS) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VTRS was recently trading at $13.27 and has an implied volatility of 44.57% for this period. Based on an analysis of the options available for VTRS expiring on 7-May-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $11.70-$13.27 at expiration. In this scenario, the average linear return for the trade would be 11.44%.
52 week low: VIATRIS INC recently reached a new 52-week low at $13.11. VTRS had traded in the range $13.31-$18.86 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if VTRS maintains its current direction and does not revert back to pricing on the bullish side of $13.27 on 7-May-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if VIATRIS INC closes at or below $13.31 on 7-May-2021. Based on our risk-neutral analysis, there is a 50.92% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.